BoCom expects tougher chase for rapid profit gains

Shanghai-based lender forecasts more competition in interest income but plans to expand fee-based sources of revenue

Bank of Communications (BoCom) yesterday reported the slowest first-half earnings growth in two years due to the economic slowdown, and predicted a mild rise in non-performing loans in the second half.

The Shanghai-based lender, part owned by HSBC, posted net profits of 31.09 billion yuan (HK$38.03 billion) between January and June, up 17.8 per cent from a year earlier.

Interim earnings grew at the slowest pace since 2010, joining its bigger domestic rivals, which also reported a sharp decline in profit growth during the first half when the mainland's economy expanded 7.8 per cent, the slowest in three years.